SCMN 2150 Final Exam Questions with Verified
Correct Answers Graded A+ latest update 2025
1. Which global channel focuses on the documentation needed for govern- ment
compliance, visibility, and control of goods moving globally.
A.) Communication channel
B.) Transaction channel
C.) Distribution channel
D.) Omni-channel--- correct answer --- A.) Communication channel
2. According to a study by Stanford University, cross border trade processes
can involve up to 106 steps. What problem does this cause?
A.) Greater in-transit visibility
B.) Lower inventory carrying costs
C.) Higher order fill rates
D.) Opportunities for freight delays--- correct answer --- D.) Opportunities for
freight delays
3. What is the first step in effective global sourcing?
A.) develop an understanding of the supply base and investigate the capabil-
ities of individual suppliers
B.) Negotiate pricing, volume, and delivery schedules
C.) Articulate your needs and maintain open lines of communication
D.) Evaluate your spend category and user requirements.--- correct answer ---
D.) Evaluate your spend category and user requirements.
,4. When a retailer sources goods to sell under its own name, what type of
goods are they offering?
A.) Private label goods
B.) Generic goods
C.) Branded goods
D.) Outsourced goods--- correct answer --- A.) Private label goods
5. What type of risk is created by the inability to maintain real-time control
over a complex network of suppliers and carriers?
A.) Visibility risks
B.) Inventory carrying cost risks
C.) In-transit damage risks
D.) Intellectual property protection risks--- correct answer --- A.) Visibility risks
6. What is the key to success for global manufacturers when competing with
domestic companies?
A.) Competitive landed costs
B.) Low labor costs
C.) Superior technology
D.) Cheap logistics services--- correct answer --- A.) Competitive landed costs
7. Production of goods by one firm, under the label or brand of another firm is
called--- correct answer ---
A.) Global sourcing
,B.) Contract manufacturing
C.) Exporting
D.) Domestic production--- correct answer --- B.) Contract manufacturing
8. When Volvo and DongFeng Motor Group collaborate to build medium and
heavy duty trucks for the Chinese market and nearby countries, what type of global
manufacturing strategy are they pursuing?
A.) Exclusive manufacturing
B.) Licensing
C.) Joint venture
D.) Direct investment--- correct answer --- C.) Joint venture
9. Which of the following is expected to be a growing global manufacturing
trend in the near future?
A.) Decreased use of automation
B.) Avoidance of business-to-business exchanges
C.) Increased reliance on internal resources
D.) Increased focus on green manufacturing--- correct answer --- D.) Increased
focus on green manufacturing
10. In this week's reading, best in class procurement organizations will need to
become more comfortable with--- correct answer ---
A.) Lower skilled workforces
B.) Volatile oil prices
C.) Data mining and analysis
D.) Process suboptimization--- correct answer --- C.) Data mining and analysis
, 11. This INCOTERM maximizes the effort, risk, and costs for the buyer (i.e., the
importer)?
A.) CPT - carriage paid to...
B.) FAS - free alongside ship
C.) EXW - ex works
D.) DDP - delivered, duty paid--- correct answer --- C.) EXW - ex works
12. Incoterms determine the seller's and buyer's respective obligations con-
cerning responsibilities and charges for the transportation of goods from the
seller's premises to the buyer's place.
True False--- correct answer --- True
13. This INCOTERM maximizes the effort, risk, and costs for the seller (i.e., the
exporter)?
A.) "D" terms - delivered
B.) "F" terms - ready for delivery
C.) "C" terms - transport cost
D.) "E" terms - ex works--- correct answer --- A.) "D" terms - delivered
14. Match the international shipping document with the most appropriate
description--- correct answer ---
Commercial invoice--- correct answer ---
A.) Escrow- like agreement between buyer's and seller's banks which guaran-
tees payment if seller meets specified terms of the sale.
B.) Assures the coverage of freight loss or damage during transit.
Correct Answers Graded A+ latest update 2025
1. Which global channel focuses on the documentation needed for govern- ment
compliance, visibility, and control of goods moving globally.
A.) Communication channel
B.) Transaction channel
C.) Distribution channel
D.) Omni-channel--- correct answer --- A.) Communication channel
2. According to a study by Stanford University, cross border trade processes
can involve up to 106 steps. What problem does this cause?
A.) Greater in-transit visibility
B.) Lower inventory carrying costs
C.) Higher order fill rates
D.) Opportunities for freight delays--- correct answer --- D.) Opportunities for
freight delays
3. What is the first step in effective global sourcing?
A.) develop an understanding of the supply base and investigate the capabil-
ities of individual suppliers
B.) Negotiate pricing, volume, and delivery schedules
C.) Articulate your needs and maintain open lines of communication
D.) Evaluate your spend category and user requirements.--- correct answer ---
D.) Evaluate your spend category and user requirements.
,4. When a retailer sources goods to sell under its own name, what type of
goods are they offering?
A.) Private label goods
B.) Generic goods
C.) Branded goods
D.) Outsourced goods--- correct answer --- A.) Private label goods
5. What type of risk is created by the inability to maintain real-time control
over a complex network of suppliers and carriers?
A.) Visibility risks
B.) Inventory carrying cost risks
C.) In-transit damage risks
D.) Intellectual property protection risks--- correct answer --- A.) Visibility risks
6. What is the key to success for global manufacturers when competing with
domestic companies?
A.) Competitive landed costs
B.) Low labor costs
C.) Superior technology
D.) Cheap logistics services--- correct answer --- A.) Competitive landed costs
7. Production of goods by one firm, under the label or brand of another firm is
called--- correct answer ---
A.) Global sourcing
,B.) Contract manufacturing
C.) Exporting
D.) Domestic production--- correct answer --- B.) Contract manufacturing
8. When Volvo and DongFeng Motor Group collaborate to build medium and
heavy duty trucks for the Chinese market and nearby countries, what type of global
manufacturing strategy are they pursuing?
A.) Exclusive manufacturing
B.) Licensing
C.) Joint venture
D.) Direct investment--- correct answer --- C.) Joint venture
9. Which of the following is expected to be a growing global manufacturing
trend in the near future?
A.) Decreased use of automation
B.) Avoidance of business-to-business exchanges
C.) Increased reliance on internal resources
D.) Increased focus on green manufacturing--- correct answer --- D.) Increased
focus on green manufacturing
10. In this week's reading, best in class procurement organizations will need to
become more comfortable with--- correct answer ---
A.) Lower skilled workforces
B.) Volatile oil prices
C.) Data mining and analysis
D.) Process suboptimization--- correct answer --- C.) Data mining and analysis
, 11. This INCOTERM maximizes the effort, risk, and costs for the buyer (i.e., the
importer)?
A.) CPT - carriage paid to...
B.) FAS - free alongside ship
C.) EXW - ex works
D.) DDP - delivered, duty paid--- correct answer --- C.) EXW - ex works
12. Incoterms determine the seller's and buyer's respective obligations con-
cerning responsibilities and charges for the transportation of goods from the
seller's premises to the buyer's place.
True False--- correct answer --- True
13. This INCOTERM maximizes the effort, risk, and costs for the seller (i.e., the
exporter)?
A.) "D" terms - delivered
B.) "F" terms - ready for delivery
C.) "C" terms - transport cost
D.) "E" terms - ex works--- correct answer --- A.) "D" terms - delivered
14. Match the international shipping document with the most appropriate
description--- correct answer ---
Commercial invoice--- correct answer ---
A.) Escrow- like agreement between buyer's and seller's banks which guaran-
tees payment if seller meets specified terms of the sale.
B.) Assures the coverage of freight loss or damage during transit.
